British Airways, Iberia and American Airlines Tie-Up Moves Ahead

The proposed transatlantic venture between American Airlines, Iberia and British Airways has just taken another step closer to securing regulatory approval in Europe. Both British Airways and the European Commission have confirmed that competition officials have started consulting with rival airlines about the concession that the three carriers had proposed to tackle potential anti-competitive implications of the venture.

The consultation by Brussels on the proposed concession is the clearest indication yet that discussions between the three carriers and the European Commission have been productive in recent months. Back in October, the European Commission sent formal charges to the airlines in connection with the proposed deal following complaints from rival airlines that it would stifle competition routes between London and several cities in the United States.

British Airways, Iberia and American Airlines are seeking to share revenue and make joint marketing and scheduling decisions on flights between the United States, Canada, Mexico and the 27 member European Union. This will include Switzerland and Norway as well.

Overall, it is easy to see why some rival airlines were upset about this proposed deal. At the same time, the deal does seem to be moving in the right direction for these three airlines. This is good news for all the airlines at a time when most of the news in the aviation industry is bad. Although this year could prove to be a better year for airlines, it could take some time for recovery to start. The economic downturn has already proven to be a little bit more than what some airlines could handle.